oody Company manufactures slippers and sells them at $10 a pair. Variable manufacturing costs are $4.50 a pair, and allocated fixed manufacturing costs are $1.50 a pair. It has enough idle capacity available to accept a one-time-only special order of 20,000 pairs of slippers at $6 a pair. Woody will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales?
Q: Fixed Capacity
A: Revenue management is a process through which the prediction of customer demand is done in order to…
Q: The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplieshot…
A: Formula:
Q: f Cassie does not maintain a safety stock, the estimated total carrying costs for the office…
A: Production management is the process of managing the production of a product, service, or result.…
Q: A plant makes monthly shipments of electric drills to a wholesaler in average lot sizes of 280…
A: Given Lot size (Q) = 280 drills Average demand(d) = 70 drills/week Lead time (L) = 3 weeks.
Q: Wilson Publishing Company produces books for the retail market. Demand for a current book is…
A: Given data, D Demand 6900 copies Cost 12 per copy Ch Holding Cost 2.28 Co Setup…
Q: Deutchlander Machine Company (DMC) makes two types of printing presses: a four-color litho and a…
A: Given - DMC earns Profit from each Four-color litho = DM24,000 DMC earns Profit from each Two-color…
Q: A chemical plant produces sodium bisulfate in 140 kg bags. Demand for this product is 35 tonnes per…
A: Given, Daily demand (d) = 35 tonnes per dayWorking days in company operates = 210 days a yearSo,…
Q: TRUE OR FALSE 1. With moderate participation level, customers work actively with the provider to…
A: "Since you have asked multiple questions, we will solve the first one for you. If you want any…
Q: Show that if available carpentry hours remain between60 and 100, the current basis remains optimal.…
A: Given data, Carpentry hours = 60 and 100 The current basis remain optimal Carpentry hours = 60…
Q: On the average, a company has 12 weeks of work-in-process and annual cost of goods sold of $40…
A: Given data The annual selling price of goods = $40 million Work-in-process = 12 weeks Total working…
Q: A small company produce high-tech bicycles for international race teams. The company's fixed cost is…
A: The given data is stated below: The fixed costs per month are 10000 and These fixed costs would be…
Q: H&M company faced poor capacity planning and poor inventory management, discuss three…
A: Capacity planning is the way toward adjusting the time and exertion of the group with the…
Q: chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons per…
A: HI, we are supposed to answer three subparts at a time. Since you have not mentioned which subpart…
Q: ABC company manufactures and sells trucks. It products the truck engines on its own. ABC Company…
A: Carrying cost is described as the different types of costs that organizations pay for holding the…
Q: The annual demand for a product is 16,800 units. The weekly demand is 323 units, with a standard…
A: Given- Annual demand (D) = 16,800 units Weekly demand (d) = 323 units Standard deviation (σd) = 95…
Q: Las Vegas, Nevada, manufacturer has the option to make or buy one of its component parts. The annual…
A: THE ANSWER IS AS BELOW:
Q: FastBus Inc. FastBus Inc. offers low-cost bus transportation between Philadelphia and New York…
A: Customers served=Days×Avg. passengers per trip×No. of buses×No. of trips=365×2×28×2×7=286,160
Q: Emarpy Appliance is a company that produces all kinds of major appliances. Bud Banis, the president…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: A Mercedes dealer pays $40,000 for each car purchased (wholesale price). The annual holding cost is…
A:
Q: two Tech bookstores, 35% at the local bookstore, and 15% online. If the SGA sells the T-shirts for…
A: Below is the solution:-
Q: If the annual cost of goods sold is $12,000,000 and the average inventory is $2,250,000. The…
A: Given Information: Average inventory at 5.33 inventory turns = $ 2,250,000 Average inventory at 10…
Q: Select the best answer. a. Servicces are produced and consumed nearly simultaneously. b. It is…
A: Services are intangible which cannot be seen we can only feel the quality of a service when it is…
Q: Acadia Logistics anticipates that it will need more distribution center space to accommodate what it…
A: Given data: Requirements Probabilities 230000 0.35 430000 0.40 630000 0.20 830000 0.05
Q: The A-to-Z Office Supply Company is open from 8:00 A.M. to 6:00 P.M., and it receives 200 callsper…
A: Total demand or orders (D) = 200 units/day Setup cost (S) = $20 Holding cost Now, the economic…
Q: A local electronic repair shop uses 12,500 units of mobile batteries each year. It costs RO 25 to…
A: Given that - Annual demand (D) = 12,500 Ordering cost (S) = 25 Holding cost (H) = 16 * 10%…
Q: Greenfield's Tannery supplies leather to the South Fork Boot Company on a monthly basis for…
A: From the given data: Here is the excel Formulation for Three month and Five month moving average
Q: Evergreen Fertilizer Company produces fertilizer. The company's fixed monthly cost is $25,000, and…
A: Breakeven refers to a point where the company is in a stable position i.e. revenues or profits are…
Q: The University Bookstore at Tech stocks the required textbook for Management Science 2405. The…
A: Annual demand ,S= 1200 copiescost of ordering,Cp = $350Annual carrying cost, (Cu ×i) =$2.75 per…
Q: Consider the supply chain illustrated here:Last year, the retailer's weekly variance of demand was…
A: Note - Hi! Thank you for the question, As per the honour code, we are allowed to answer three…
Q: Determine the average demand during lead time. (Round to two digits. eg. xx.xx) What is the…
A: THE ANSWER IS AS BELOW:
Q: Maha industries produces a product whose anticipated demand for the six periods is 63, 256, 301 312,…
A: Introduction: The term Business refers to an exchange of goods and services between the buyer and…
Q: H&M company faced poor capacity planning and poor inventory management, discuss and explain three…
A: Capacity planning is the is the process of deciding the creation limit required by an association to…
Q: HAL Ltd. produces a line of high-capacity disk drives for mainframe computers. The housings for the…
A: Given Total demand of housing per year is 720 units Shipping = 1 truck per week. The fixed cost of…
Q: The Pedal Pusher Bicycle Shop operates 7 days per week, closing only on Christmas Day. The shop pays…
A: Given information Operation days = 7 days per week Average sell = 25 bikes Holding cost = 25%…
Q: Emarpy Appliance is a company which produces all kinds of major. Bud Banis, the president of Emarpy,…
A: Note: "Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: [EXCEL] Computing terminal-year FCF: Healthy Potions, Inc., a pharmaceutical company, bought a…
A: Cash flow is the total amount of cash or its equivalents being in and out of a business.
Q: The optimal run size The number of runs per year How many days it takes to produce the optimal run…
A: Demand is the total quantity of products and services for which the customers are ready to pay…
Q: Deutchlander Machine Company (DMC) makes two types of printing presses: a four-color litho and a…
A: This question is related to the topic of decision making and this topic falls under the operations…
Q: A monorail shuttle is being planned between the airport and downtown. Find the break-even fare to…
A: Given, Fixed cost = $10,000,000 Variable cost = $400,000 + $40,000 = $440,000 Selling price =…
Q: A coffee roaster in Richardson has opened a retail store adjacent to the production plant. The plant…
A: Formula:
Q: Mancuso's Music Store is a small business that sells instruments, books, stands, and other…
A: As per the given question, the lead time is 5 business days, Economic Order Quantity is 1500 units.…
Q: Madonna’s Burgers is considering making hamburger buns in-house instead of buying them from its…
A: This question is related to the topic-Break even method and this topic fall under the operations…
Q: On the average, a firm has 10 weeks of work-in-process, and annual cost of goods sold is $15…
A: Weekly Cost of Goods Sold = $15,000,000 per year/50 weeks per year = 300,000/week Value of 12 Weeks…
Q: Gas Me Up is considering offering bagged ice sales through a self-service company that would locate…
A: Breakeven point = Fixed Costs ÷ (Revenue per unit – Variable costs per unit) 1.
Q: Acadia Logistics anticipates that it will need more distribution center space to accommodate what it…
A: Expected value identifying the possible cost based on probable demand with the consideration of unit…
Q: Toyco produces a line of Bonnie dolls and accessories at its plants in New York and Baltimore that…
A: Find the Given details below: From/To Pittsburgh Denver Chicago Los Angeles Supply New York 182…
Q: Peter operates an ice cream shop and needs to order milk from a dairy supplier. The average daily…
A:
Q: Wilson Publishing Company produces books for the retail market. Demand for a current book is…
A: Given that: Annual Demand(D)= 7400 copies Cost of the book(c)= $13 Holding Cost = 15% of c = 0.15*13…
- The Woody Company manufactures slippers and sells them at $10 a pair. Variable
are $1.50 a pair. It has enough idle capacity available to accept a one-time-only
special order of 20,000 pairs of slippers at $6 a pair. Woody will not incur any
marketing costs as a result of the special order. What would the effect on operating
income be if the special order could be accepted without affecting normal sales?
(a) $0, (b) $30,000 increase, (c) $90,000 increase, (d) $120,000 increase
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
- Annie bought one dozen smartphones for P200,000.00 with a discount of 5%. She sold half dozen at a price of P18,000 00 per unit. However, a new model of smartphone became available in the market, so she sold the remaining half dozen @ P12,000.00 each unit. What was her profit or loss? Compute the following requirements: a. Gross Profit Rate b. Operating profit margin rate c. Net profit margin rate d. Return on Investment Following Questions: 1. Is creativity present in the operation of ordinary small business along the streets and highways and in your neighborhood? Why do you say so? 2. Will you consider the daily business practices of the small owner within the concept of entrepreneurship? Why?When it was founded, Instacart operated with only full-service shoppers, who typically shop from many different stores. The introduction of the role of in-store shoppers made model II (see figure 2 in the case) possible. Think of an advantage of model II over model I, with respect to the service capacity. In other words, in what way can it be beneficial to have the two roles fulfill a customer's order jointly? Note: Please keep your answer concise, with no more than 150 words.In one fiscal year, firm B has ROA (return on asset) of 5%, and they borrow a substantial amount of money from banks to finance their operations. Except for that, the firm has no debt. Suppose the interest rate for the loans is 6%. What will this firm's ROE (return on equity) be? Group of answer choices More than 5% Less than 5% Less than 4% More than 4% Please ANSWER ASAP
- Annie bought one dozen smartphones for 200,000 pesos with a discount of 5%. She sold half dozen at a price of 18,000 pesos per unit. However, a new model of smartphone became available in the market, so she sold the remaining half dozen at 12,000 pesos each unit. What was her profit or loss? Compute the following requirements: a. Gross profit rate b. Operating profit margin rate c. Net profit margin rate d. Return on investmentABC company creates specialty shipping bags that they sell to pharmaceutical companies across the globe. With their current equipment, ABC can produce 12,000 shipping bags for every 10 bundles of materials purchased. Every month (20 working days), ABC purchases100 bundles of materials. Each bundle requires one (1) labor minute to process, and every labor hour costs an average of $14.00. Each week (5 working days), ABC pays $5,000 inoverhead costs, and equipment costs $600 a day to operate.(a) How many shipping bags does ABC produce in a standard month (20 working days)? Each workday (8 hours)? (b). What is the single-factor productivity for labor, per workday (8 hours)? (d). What is the multi-factor productivity, for every dollar spent per shipping bag?Suppose the newsvendor model describes a firm’s operations decision. Is it possible to havepositive stockout probability and positive expected leftover inventory? Choose the best answer. a. No. If there is leftover inventory, then a stockout doesn’t occur.b. No. If the stockout probability is positive, then expected inventory must be negative.c. No. Actual demand can differ from sales.d. Yes. A firm does not stock out and have leftover inventory at the same time, but the stockout probability can be positive even though there is positive expected leftover inventory.e. Yes, as long as the underage cost is greater than the overage cost.
- Deutchlander Machine Company (DMC) makes two types of printing presses: a four-color lithoand a two-color litho. Demand for both products is booming and exceeds DMC’s ability to satisfyit. Most raw materials are plentiful, but production is limited by three factors: a shortage of steelrollers, gear cutting capacity, and roller polishing capacity. Each four-color press requires 16rollers, and each two-color press requires 8 rollers. The four-color presses require 30 hours ofgear cutting and 8 hours of polishing time, and the two-color presses require 12 hours of gearcutting and 3 hours of polishing time. DMC is able to buy 100 rollers per week, and it has 160hours of gear cutting time and 40 hours of polishing time available per week. To avoid harminglong-term sales, DMC does not want to raise prices. At current prices DMC will earn a profit ofDM24,000 on each four-color press made and DM10,000 on each two-color press made. So asnot to abandon either product market, DMC also wants to…Cassie Company manufactures a line of deluxe office fixtures. The annual demand for its miniature oak file is estimated to be 5,000 units. The annual cost of carrying one unit in inventory is P10, and the cost to initiate a production run is P1,000. There are no miniature oak files on hand, and Cassie has scheduled four equal production runs of the miniature oak file for the coming year, the first of which is to be run immediately. Cassie has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. If Cassie does not maintain a safety stock, the estimated total carrying costs for the office fixtures for the coming year based on their current schedule is Answer: Refer to Cassie, the number of production runs per year of the miniature oak files that would minimize the sum of carrying costs and setup costs for the coming year is Answer:I need a detailed explanation and assistance to solve this problem: Wineco produces wine cooler as a blend of wine, grape juice and apple juice ingredients, which it sells for $4 per gallon. The costs of ingredients are given in the following table: Cooler Ingredient Price per Gallon ($) wines 1.20 grape juice 1.40 Apple juice 0.60 Wineco owns a blending plant with a production capacity of 200 gallons per day. Because the plant is fully automated, all other production costs are negligible by comparison to the cost of ingredients, and can be ignored. Government regulations mandate that wine cooler products must satisfy the following guidelines: At least 10% of the blend produced must be grape juice. The ratio of apple juice to grape juice in the blend produced must be 2.5:1 The blend produced must contain between 20% and 25% wine. Wineco wishes to use LP in order to determine the quantities of ingredients to buy for a day’s production of wine cooler, so…
- JokersRWild makes playing cards in several different styles, but a “standard” deck of cards is used for planning purposes. The average worker at JokersRWild can make 10,000 sets of decks of cards per month at a cost of $3.40 per deck during regular production and $3.70 during overtime. The company currently employs 35 workers. Experience shows that it costs $1,700 to hire a worker and $1,700 to fire a worker. Inventory carrying cost is $.49 per deck per month. The beginning inventory is 54,000, and at least that amount is desired each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. Month January February March April May June Demand 200,000 240,000 200,000 530,000 540,000 870,000 e. Develop a six-month production plan based on chase by changing workforce level. (Leave no cells blank - be certain to enter "0" wherever required.) Chase Production Plan – Changing Workforce Level Month Demand Regular Production Ending…A company produces a niche hunting blind. Because of the nature of this product, demand varies greatly by season. In fact, demand exceeds production capacity during hunting season (fall,) but is very low in the summer months. To meet the high demand during the fall, the company produces the blind year round, producing more than what is needed in the summer in order to carry over inventory into the peak season. Their production facility can produce at most 60 blinds per month using regular labor at a cost of $125 each. Up to 15 additional blinds can be produced by utilizing overtime labor at a cost of $135 each. The blinds are sold for $225. Because of storage cost and the opportunity cost of capital, each blind held in inventory from one month to the next incurs a cost of $15 per blind. Since demand is uncertain, the company would like to maintain an ending inventory of at least 5 blinds during the warm months (May–September) and at least 15 blinds during the other months…Emarpy Appliance is a company that produces allkinds of major appliances. Bud Banis, the president of Emarpy,is concerned about the production policy for the company’s bestsellingrefrigerator. The annual demand has been about 8,000units each year, and this demand has been constant throughoutthe year. The production capacity is 200 units per day. Each timeproduction starts, it costs the company $120 to move materialsinto place, reset the assembly line, and clean the equipment. Theholding cost of a refrigerator is $50 per year. The current productionplan calls for 400 refrigerators to be produced in each productionrun. Assume there are 250 working days per year.a) What is the daily demand of this product?b) If the company were to continue to produce 400 units each timeproduction starts, how many days would production continue?c) Under the current policy, how many production runs per yearwould be required? What would the annual setup cost be?d) If the current policy continues, how many…